Correlation Between Eaton Vance and Doubleline Income

Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Doubleline Income at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eaton Vance and Doubleline Income into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eaton Vance Risk and Doubleline Income Solutions, you can compare the effects of market volatilities on Eaton Vance and Doubleline Income and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Eaton Vance with a short position of Doubleline Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Doubleline Income.

Diversification Opportunities for Eaton Vance and Doubleline Income

0.25

Correlation Coefficient

Eaton Vance  Doubleline Income

Modest diversification

The 3 months correlation between Eaton and Doubleline is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Risk and Doubleline Income Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Income and Eaton Vance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Eaton Vance Risk are associated (or correlated) with Doubleline Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Income has no effect on the direction of Eaton Vance i.e., Eaton Vance and Doubleline Income go up and down completely randomly.

Pair Corralation between Eaton Vance and Doubleline Income

Considering the 90-day investment horizon Eaton Vance Risk is expected to generate 1.04 times more return on investment than Doubleline Income. However, Eaton Vance is 1.04 times more volatile than Doubleline Income Solutions. It trades about 0.14 of its potential returns per unit of risk. Doubleline Income Solutions is currently generating about 0.06 per unit of risk. If you would invest  887.00  in Eaton Vance Risk on September 12, 2024 and sell it today you would earn a total of  49.00  from holding Eaton Vance Risk or generate 5.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Eaton Vance Risk  vs.  Doubleline Income Solutions

Eaton Vance Risk

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Risk are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively steady basic indicators, Eaton Vance is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Doubleline Income

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Income Solutions are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. Despite quite persistent basic indicators, Doubleline Income is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Eaton Vance and Doubleline Income

The main advantage of trading using opposite Eaton Vance and Doubleline Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Doubleline Income can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Doubleline Income will offset losses from the drop in Doubleline Income's long position.

The idea behind Eaton Vance Risk and Doubleline Income Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.